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CGAU or AEM: Which Is the Better Value Stock Right Now?
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Investors interested in Mining - Gold stocks are likely familiar with Centerra Gold Inc. (CGAU - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Centerra Gold Inc. and Agnico Eagle Mines are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CGAU currently has a forward P/E ratio of 10.20, while AEM has a forward P/E of 20.51. We also note that CGAU has a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AEM currently has a PEG ratio of 1.08.
Another notable valuation metric for CGAU is its P/B ratio of 0.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AEM has a P/B of 2.87.
These are just a few of the metrics contributing to CGAU's Value grade of A and AEM's Value grade of C.
Both CGAU and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CGAU is the superior value option right now.
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CGAU or AEM: Which Is the Better Value Stock Right Now?
Investors interested in Mining - Gold stocks are likely familiar with Centerra Gold Inc. (CGAU - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Centerra Gold Inc. and Agnico Eagle Mines are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CGAU currently has a forward P/E ratio of 10.20, while AEM has a forward P/E of 20.51. We also note that CGAU has a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AEM currently has a PEG ratio of 1.08.
Another notable valuation metric for CGAU is its P/B ratio of 0.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AEM has a P/B of 2.87.
These are just a few of the metrics contributing to CGAU's Value grade of A and AEM's Value grade of C.
Both CGAU and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CGAU is the superior value option right now.